Developments in financial markets can have broad economic effects felt by many outside the markets.

The basic prescription for preventing deflation is therefore straightforward, at least in principle: Use monetary and fiscal policy as needed to support aggregate spending, in a manner as nearly consistent as possible with full utilization of economic resources and low and stable inflation. In other words, the best way to get out of trouble is not to get into it in the first place.

Every effort needs to be made to try and offset the costs of Katrina and Rita by reductions in other government programs, especially those that are wasteful, duplicative and ineffective.

A money-financed tax cut is essentially equivalent to Milton Friedman's famous 'helicopter drop' of money.

The people who best use their advantages, or overcome adversity, and work honestly are those most worthy of admiration.

I come from Main Street, from a small town that's really depressed.

If Wall Street crashes, does Main Street follow? Not necessarily.